Middleby (MIDD)

Risks

• Current and future economic conditions could adversely affect the company’s business and financial performance.
• Uncertainty surrounding the terms of the United Kingdom’s withdrawal from the European Union may have a negative effect on global economic conditions, financial markets or the Company’s business.
• The company is subject to currency fluctuations and other risks from its operations outside the United States.
• The COVID-19 pandemic has adversely impacted, and likely will continue to, adversely impact and pose risks to the company, the nature and extent of which are highly uncertain and unpredictable.
• The company’s level of indebtedness could adversely affect its business, results of operations and growth strategy.
• The company’s current credit agreement limits its ability to conduct business, which could negatively affect the company’s ability to finance future capital needs and engage in other business activities.
• Fluctuations in interest rates could adversely affect the company's results of operations and financial position.
• The company has a significant amount of goodwill and indefinite life intangibles could suffer losses due to asset impairment charges.
• The company's defined benefit pension plans are subject to financial market risks that could adversely affect the company's results of operations and cash flows.
• The company faces intense competition in the commercial foodservice, food processing, and residential kitchen equipment industries and failure to successfully compete could impact the company’s results of operations and cash flows.
• The company is subject to risks associated with developing products and technologies, which could delay product introductions and result in significant expenditures.
• The company depends on key customers for a material portion of its revenues. As a result, changes in the purchasing patterns or loss of one or more key customers could adversely impact the company’s operating results.
• Price increases in some materials and disruptions in supply could affect the company’s profitability.
• The company faces risks related to health epidemics and other widespread outbreaks of contagious disease, which could significantly disrupt its operations and impact its operating results.
• The company may be the subject of product liability claims or product recalls, and it may be unable to obtain or maintain insurance adequate to cover potential liabilities.
• An increase in warranty expenses could adversely affect the company’s financial performance.
• The company’s financial performance is subject to significant fluctuations.
• The company may be unable to manage its growth.
• The company’s acquisition, investment and alliance strategy involves risks. If the company is unable to effectively manage these risks, its business will be materially harmed.
• An inability to identify or complete future acquisitions could adversely affect future growth.
• Expansion of the company’s international operations involves special challenges that it may not be able to meet. The company’s failure to meet these challenges could adversely affect its business, financial condition and operating results.
• The impact of future transactions on the company’s common stock is uncertain.
• The company’s business could suffer in the event of a work stoppage by its unionized labor force.
• The company depends significantly on its key personnel.
• The company may not be able to adequately protect its intellectual property rights, which may materially harm its business.
• Any infringement by the company of a third party's patent rights could result in litigation and adversely affect its ability to provide, or could increase the cost of providing, the company’s products and services.
• The company may be subject to information technology system failures, network disruptions, cybersecurity attacks and breaches in data security, which may materially adversely affect the company’s operations, financial condition and operating results.
• The company may be subject to litigation, tax, and other legal compliance risks.
• The company’s reputation, ability to do business, and results of operations may be impaired by the improper conduct of any of its employees, agents, or business partners.
• The company is subject to potential liability under environmental laws.
• Unfavorable tax law changes and tax authority rulings may adversely affect financial results.
• The trading price of the company's common stock has been volatile, and investors in the company's common stock may experience substantial losses.